The WTO’s Dispute Settlement Body last Friday dismissed the current ban on the distribution of clove cigarettes in the United States as illegal for targeting primarily foreign products.

The WTO judges concluded in their panel report that a US ban on clove cigarettes – also known as kreteks – aimed at preventing teenagers from smoking was discriminatory as clove and menthol-flavored cigarettes were “like products.”
In 2009 the US Food and Drug Administration (FDA) banned cigarettes with fruit, confectionery, or clove flavours, arguing that these encouraged young people to smoke, but menthol flavoured cigarettes were not banned.
However, the WTO said Indonesia had failed to prove their second claim, which was that the ban was unnecessary. The WTO argued the ban was a legitimate approach to prevent teenagers from smoking. A summary of the ruling can be found here.
Both parties may appeal the ruling within 60 days, which would result in an Appellate Body decision, presumably in the first quarter of 2012.
Meanwhile, discussions in the US continue on whether to ban menthol cigarettes. In March, the FDA released a report arguing in favour of a ban.
Indonesia lodged its complaint at the WTO in April 2010. (pi)